Long term plans in business

Having a long term strategy set out in full is something that nearly every business owner does.

It’s always been a smart strategy, because it enables you to have a vision, combined with smaller steps that will take you to that vision.

This was fine when things took a few years to change, but now in the modern era entire industries turn around overnight.

Technology improves roughly every 6 months in the modern era, which is the quickest turnover rate in history by far.

How can you layout a ten year plan, when there’s going to be around 20 giant leaps forward, or major changes?

How can you have a 5 year plan when there’s 10, and even a 1 year plan will have 2 major changes.

 

Banking On The Wrong Thing

Due to the uncertainty that surrounds us, it’s not wise to bank on things being guaranteed.

Lets say you received a large investment for your business of $250,000.

With that money you immediately get to work and use 90% of it to push toward your 5 year plan.

After 2 years, 4 major transitions have occurred, and your entire business model is different.

The 5 year plan becomes meaningless and even the way your business runs day to day is different.

Imagine spending all of the money you had on a brand new store around the time the internet blew up. You’d be kicking yourself, because all of that money could’ve gone on a great site and online marketing.

 

Flexible

Most business owners don’t follow their future plans, they end up referring to them as guidelines when everything is set and done.

The modern entrepreneur needs to be flexible and agile. Change occurs and it occurs often. The processes you have in place right now, will probably be obsolete in 5 years, and will certainly need modifying prior to that.

With that being said, it’s smart to move quickly in brief flurries of action.

See a new piece of technology on the horizon, give yourself 6 months to transition and keep everything lean.

Spending years on a single process that is permanent is a poor choice. It would be like setting a 5 year plan in the current era to build the greatest fuel guzzling, man driven car anyone has ever seen.

By the time you complete the product most people will be sat in self-driving cars that use clean energy and in fact look nothing like cars.

 

Being Aware Of Change

If you’re not hyper-aware of your industry, then you won’t last.

Every single piece of new technology could either mean your demise or your rise, don’t underestimate anything.

Even if you can’t see any possible way that this new technology can fit into your businesses life, make sure you double check.

50 years ago businesses remained the same for blocks of time. It wasn’t uncommon for someone to carry out the exact same tasks for 10 years straight.

Now however people move departments, get made redundant, are forced to learn new skills, etc.

You have to stay lean and that means no long term plans.

 

Why Your Vision Is The Only Long Term Strategy You Need

An F1 driver knows that they have to cross the finishing line, and they have a game plan. But the rest is a complete guess.

They react as they drive. You can’t predict the guy next to you cutting across your car, or his tire blowing out. Instead you have to take things in your stride and react to change.

The end vision remains the same, “crossing the finishing line first.” But how you get there is anyone’s guess.

The modern era is exactly like this. Change happens quickly and often, stay light. The more agile you are the more chance you have of benefiting from the change.

Larger companies are suffering in the modern era like never before. They’re being disrupted on a regular basis. The reason for this is because they haven’t had to change so quickly since they began.

Usually they set out their methods and work for 5 years straight with a market share in mind. Now however young people are trying new things, testing with old methods, and doing everything they can to be the future.

Strike quick, be light, have versatile methods and be aware of everything that’s a threat or a potential opportunity to your business in the short term. This is how to succeed as a modern entrepreneur.

In the Kid Ink song “Hell & Back”, the lyrics are as follows…

“No 5-year plan gotta live for the day cause I could die where I stand”

In a more business worded manner.

“No 5-year plan gotta live for the day cause my business could die where it stands”

This is something that more entrepreneurs should begin living by.

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Having a long term strategy set out in full is something that nearly every business owner does.

It’s always been a smart strategy, because it enables you to have a vision, combined with smaller steps that will take you to that vision.

This was fine when things took a few years to change, but now in the modern era entire industries turn around overnight.

Technology improves roughly every 6 months in the modern era, which is the quickest turnover rate in history by far.

How can you layout a ten year plan, when there’s going to be around 20 giant leaps forward, or major changes?

How can you have a 5 year plan when there’s 10, and even a 1 year plan will have 2 major changes.

 

Banking On The Wrong Thing

Due to the uncertainty that surrounds us, it’s not wise to bank on things being guaranteed.

Lets say you received a large investment for your business of $250,000.

With that money you immediately get to work and use 90% of it to push toward your 5 year plan.

After 2 years, 4 major transitions have occurred, and your entire business model is different.

The 5 year plan becomes meaningless and even the way your business runs day to day is different.

Imagine spending all of the money you had on a brand new store around the time the internet blew up. You’d be kicking yourself, because all of that money could’ve gone on a great site and online marketing.

 

Flexible

Most business owners don’t follow their future plans, they end up referring to them as guidelines when everything is set and done.

The modern entrepreneur needs to be flexible and agile. Change occurs and it occurs often. The processes you have in place right now, will probably be obsolete in 5 years, and will certainly need modifying prior to that.

With that being said, it’s smart to move quickly in brief flurries of action.

See a new piece of technology on the horizon, give yourself 6 months to transition and keep everything lean.

Spending years on a single process that is permanent is a poor choice. It would be like setting a 5 year plan in the current era to build the greatest fuel guzzling, man driven car anyone has ever seen.

By the time you complete the product most people will be sat in self-driving cars that use clean energy and in fact look nothing like cars.

 

Being Aware Of Change

If you’re not hyper-aware of your industry, then you won’t last.

Every single piece of new technology could either mean your demise or your rise, don’t underestimate anything.

Even if you can’t see any possible way that this new technology can fit into your businesses life, make sure you double check.

50 years ago businesses remained the same for blocks of time. It wasn’t uncommon for someone to carry out the exact same tasks for 10 years straight.

Now however people move departments, get made redundant, are forced to learn new skills, etc.

You have to stay lean and that means no long term plans.

 

Why Your Vision Is The Only Long Term Strategy You Need

An F1 driver knows that they have to cross the finishing line, and they have a game plan. But the rest is a complete guess.

They react as they drive. You can’t predict the guy next to you cutting across your car, or his tire blowing out. Instead you have to take things in your stride and react to change.

The end vision remains the same, “crossing the finishing line first.” But how you get there is anyone’s guess.

The modern era is exactly like this. Change happens quickly and often, stay light. The more agile you are the more chance you have of benefiting from the change.

Larger companies are suffering in the modern era like never before. They’re being disrupted on a regular basis. The reason for this is because they haven’t had to change so quickly since they began.

Usually they set out their methods and work for 5 years straight with a market share in mind. Now however young people are trying new things, testing with old methods, and doing everything they can to be the future.

Strike quick, be light, have versatile methods and be aware of everything that’s a threat or a potential opportunity to your business in the short term. This is how to succeed as a modern entrepreneur.

In the Kid Ink song “Hell & Back”, the lyrics are as follows…

“No 5-year plan gotta live for the day cause I could die where I stand”

In a more business worded manner.

“No 5-year plan gotta live for the day cause my business could die where it stands”

This is something that more entrepreneurs should begin living by.